March 2017 has been fixed as the deadline for the states to join the scheme, and 15 states have already joined the scheme. Tamil Nadu has been reluctant to join Uday, as it would be mandatory for the states to revise power tariff every quarter under the scheme. The state has also been pushing the Centre to allow it to cross the fiscal deficit limit of 3% of GSDP (Gross State Domestic Product) to enable it to absorb Tangedco's debt of 80,000 crore. Once the loss-making discom joins the Uday scheme, the company's overall debt and amount apportioned to service the interest component will come down.

Though Tamil Nadu has been reluctant to join the scheme, Goyal wanted Tangedco to join the scheme, and finally, according to sources, the deal was clinched when he met chief minister J Jayalalithaa last July.